How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4473
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
43581946
Type Your Finance Question Here...
Rakhi Vasavada is online now
A new question is answered every 9 seconds

If you are leasing a building and you just did 1000's of

Customer Question

If you are leasing a building and you just did 1000's of dollars in repair and upgrading the building (new floors, new walls, etc...) does this still get recorded as Repairs/Maintenance or can some of this go to FIXED ASSETS? We also have an option to
purchase the building and put 10,000.00 to secure the option. Thanks, Joe
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.
Dear *****,
Hello and welcome. Thank you for providing an opportunity to assist you.
These are NOT repairs that occur due to routine wear and tear of the building. This amounts to up-gradation of the building and this goes to the Fixed Costs.
This also goes and gets added to the basis of the property and gets added to the valuation.
Yes, you can have option of repurchase added to this.
I am sure this would help.
You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.
Warm Regards
Customer: replied 1 year ago.
Hi,
But this is still an expense and not a fixed asset, right?Joe
Expert:  Rakhi Vasavada replied 1 year ago.
Dear *****,
Hello and welcome again..
YES, you are right. You will record it as an CAPITAL EXPENDITURE but not fixed asset as you are NOT buying anything new.
I am sure this would help.
You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.
Warm Regards